KUWAIT CITY, Jan 6: The Central Bank of Kuwait has instructed exchange companies to stop engaging in commercial, real estate, or industrial activities, limiting their operations strictly to currency exchange and money transfer services. In addition, the regulatory body has also directed exchange companies to cease collecting documents on behalf of express mail companies.

This action follows observations that some exchange companies were providing document collection services for express mail firms, which is prohibited under Article (5) of the Ministerial Resolution issued on March 19, 1984. This resolution subjects exchange companies to the supervision of the Central Bank, restricting them to activities related to the buying, selling, or exchanging of foreign currency banknotes, as well as providing money transfer services to customers.

In related news, several exchange companies and institutions have started making preparations to comply with a recent decision issued by the Minister of Commerce and Industry, Khalifa Al-Ajeel. This decision mandates that institutions and companies under the Ministry's supervision must meet the requirements set by the Central Bank. The deadline for companies to adjust their status in accordance with these new regulations is March 31.

The decision also includes a suspension on issuing new licenses for exchange institutions or companies, and stipulates that licenses will be suspended or canceled for institutions that fail to meet the Central Bank's requirements. Additionally, all commercial activities, including alternative remittance services provided by exchange companies, will be prohibited starting March 31.